une 10, 2020 - S&P
Global Ratings international rating agency confirmed ALROSA’s BBB-
investment grade credit rating with a “stable” outlook. The
agency draws attention to the company’s consistently high
profitability, its leading position in the diamond market and
high-quality reserves, as well as prudent financial and dividend
policies and high level of corporate governance.
A stable outlook reflects the agency’s
confidence in relatively fast recovery of credit metrics in 2021-2022
after the weakening amid COVID-19 lockdowns, as the company acted
proactively to limit the negative impact on its cash flows. Among
measures taken, S&P Global Ratings highlights downward correction
of the company’s capex program and production target.
“The confirmation of ALROSA's rating at the
investment grade with a stable outlook during this challenging period
for the global diamond industry underscores the company’s prudent
approach to its financial and sales policy. We have streamlined our
production plans and capex program, as well as reduced administrative
costs. Our sales strategy focuses on restoring a supply/demand
balance throughout the whole diamond pipeline. We expect the demand
for rough diamonds starting to revive in mid-Q3," said Alexey
Philippovskiy, ALROSA's Deputy CEO.